Fórsa and trade unions across Europe have welcomed a ruling by the European Court of Justice confirming that the EU Adequate Minimum Wage Directive stands on firm legal ground. The decision, issued last week, provides a solid basis for advancing fair wages and collective bargaining across Europe.

The European Trade Union Confederation (ETUC) said member states must now move ahead with national action plans to strengthen collective bargaining coverage and ensure that minimum wages meet adequacy benchmarks.

The Irish Government transposed the Directive into Irish law in November 2024 and launched its Action Plan on Collective Bargaining earlier this month. Ireland’s collective bargaining coverage remains below the 80% benchmark set by the Directive. The Action Plan was developed jointly with the Irish Congress of Trade Unions (ICTU) and the employer body, Ibec.

The Court upheld key provisions reaffirming the Directive’s “threshold of decency” (50% of the median wage and 60% of the average wage), as binding reference points for fair wage-setting across Europe. Ireland’s National Minimum Wage was set to be replaced by a National Living Wage next year, set at 60% of the median wage. However, the Government has pushed this back, with a phased introduction to 2029.

Fórsa general secretary Kevin Callinan said the ruling gives the Irish Government the opportunity to show real ambition in implementing the Directive and advancing collective bargaining coverage: “This ruling confirms that the Directive is robust, and that Ireland can move forward with confidence. The Government now has a clear mandate to implement its Action Plan on Collective Bargaining, including the reintroduction of tax relief on trade union subscriptions and the implementation of the National Living Wage.

“These are essential steps towards ensuring decent work, fair pay, and a sustainable model of social dialogue. In uncertain times, this Directive provides a solid foundation for negotiated progress. The kind of balanced, evidence-based approach that delivers stability and fairness for workers and employers alike,” he said.

ICTU general secretary Owen Reidy said: “Ireland needs to ensure that all workers who want a union at work can have one without the employer veto. This decision underlines the importance of a social Europe, which is critical if we are to stem the rise of the far right and ensure that workers and their families can not only survive but thrive in Ireland and across the EU.”

Fórsa national secretary and ICTU vice president Katie Morgan said: “This ruling is really welcome, particularly for workers who are seeking union recognition in their workplaces. Fórsa has been successful in achieving union recognition in many anti-union employments; however, some outliers continue to deny their staff the right to organise. Let this be a clear signal that the game is up; union recognition is unavoidable.”

Read general secretary Kevin Callinan's recent opinion column on this topic here.

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